SYNOPSIS: DOD is finalizing, without change, the interim rule that converted programs based on the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS), in accordance with the final rule issued by the Small Business Administration (SBA) that went into effect October 1, 2000.

SUPPLEMENTAL INFORMATION: On May 15, 2000, the SBA converted its small business size standards from SIC-based to NAICS-based, and it required federal agencies to use the new NAICS-based size standards beginning October 1, 2000. An interim rule revising the FAR to conform to the NAICS-based size standards was published July 26, 2000, in FAC 97-19, and it went into effect October 1, 2000.

To comply with the SBA and FAR rules, DOD published an interim rule on August 17, 2000, which made corresponding changes to the DFARS, particularly to DFARS Part 219, Small Business Programs (such as changing "SIC" to "NAICS"). The most significant change was in paragraph (b) of DFARS 219.1005, Applicability, which contains the NAICS codes for the DOD's targeted industry groups under the Small Business Competitiveness Demonstration Program.

One source submitted comments on the interim DFARS rule, but DOD has decided to finalize the interim rule without changes.